CHENIERE ENERGY INC (NYSE:LNG) may be ready to breakout.

A possible breakout setup was detected on CHENIERE ENERGY INC (NYSE:LNG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:LNG.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 10 out of 10 to LNG. Both in the recent history as in the last year, LNG has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, LNG did better than 93% of all other stocks. On top of that, LNG also shows a nice and consistent pattern of rising prices.
• LNG is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 95% of 212 stocks in the same industry.
• LNG is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so LNG slightly outperforms the market at the moment.
• In the last month LNG has a been trading in the 188.70 - 238.78 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of LNG

How do we evaluate the setup for LNG?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for LNG is 7:

LNG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 224.38, a Stop Loss order could be placed below this zone.

How to trade LNG?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade LNG and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.